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2) A small company purchased now for $123,000 will lose $600 each year for the first four years. An additional $800 in the company in

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2) A small company purchased now for $123,000 will lose $600 each year for the first four years. An additional $800 in the company in the fourth vear will result in a profit of $9,500 each year from the fifth through the fifteenth year. At the end of 15 years, the company can be sold for $135,000. a)Draw the cash flow diagram b) Calculate the FW if MARR is 6%. c) Calculate the ERR when = 8%. 1 35 2.3, Doo A-600 ur 6% )=-123,000.(60) ( 3.46) 000 (49H3 ) ( -7 oo(6) 3 ) t l35000 (4.9 It3 ) (. 21) Goo (o.azl 1500 (o13) 121711 3

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